Stocks surged once again on Monday, as traders ignored weak economic data and focused on strong retail earnings.
The Nasdaq surged 33 to 1394, the S&P 500 gained 21 to 950, and the Dow bolted 212 to 8990. Volume edged higher to 1.29 billion shares on the NYSE, and 1.58 billion on the Nasdaq. Advancers led 22 to 10 on the NYSE, and 20 to 13 on the Nasdaq.
After the close, Agilent missed estimates.
During the day, Emulex gained 10% on an upgrade.
AOL gained 6% despite reports that the company’s accounting is still being scrutinized by the SEC.
Overture gained 7 cents, weighed down by analyst comments about competition from Google.
Microsoft and Intel
closed above their 50-day moving averages, but Cisco
finished well off its best levels of the day.
Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.
Be careful out there: the S&P and Wilshire 5000 (first two charts below) closed right at major resistance today. As we’ve said before, we don’t expect those levels – necklines of massive head-and-shoulders tops – to be taken out by more than 2% on a closing basis. Also, we had the third straight low reading in the equity-only put-call ratio for the first time since April-May 2001, so some sort of pullback seems called for here. That said, there are a number of technical positives here. To start with, all three indexes closed above their 50-day moving averages today. The Dow (third chart) is right at 9000 resistance; much higher and it could be headed for 9400. 8850 and 8750 are support, and 8600 is critical. The S&P (fourth chart) closed right at major resistance at 950; we do not expect a close higher than 970 or so in that index. First support is 930-935, and 905-910 is critical support. The Nasdaq (fifth chart) is right below some significant resistance at 1405-1410. If the index can clear that level, next resistance is 1450. Support is 1375, 1355, 1325 and 1300 (critical).
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